The first branch of state-owned enterprises engaged in steel industry restructuring fund set up
2018 steel industry mergers and acquisitions will accelerate
The top ten steel companies in the future the average capacity or up to 50 million tons
On the 9th, the Shanxi Iron and Steel Industry Structure Adjustment Fund was established. This is the third related fund since the establishment of Siyuan Iron and Steel Industry Structure Adjustment Fund by Baowu Iron & Steel Co., Ltd. in 2017 and the first fund in this category initiated by private steel enterprises. Insiders said that with the improvement of the steel industry efficiency, to the production capacity into the final stage of the future reform of the steel industry will shift to the focus of leverage and mergers and acquisitions, in order to enhance the concentration of the steel industry.
Steel industry concentration needs to be improved
'Concentration is too low is the biggest problem facing the steel industry.' 'Allianz Metallurgical Chamber of Commerce, Beijing Jianlong Heavy Industries Group Co., Ltd. Chairman Zhang Zhixiang, compared with the developed countries, China's steel industry concentration is still low. For example, in 2015, the top four Japanese steelmakers have a production capacity concentration of 83.3%, the top four iron and steel producers in the United States have a production capacity concentration of 70%, the top eight steel producers in the EU have a concentration of 64.9%, while China's top ten Steel production capacity accounted for only 34.2%.
The reorganization and merger among the iron and steel enterprises are being promoted, but the industrial concentration of China's steel industry has not significantly risen. In 2015, the concentration of China's iron and steel industry even further declined. According to the statistics of China Steel Association, in 2015, The total output of the four enterprises accounted for 18.5% of the national total, down 0.1 percentage points from 2014; the top ten enterprises accounted for 34.2% of the national total, down 0.8 percentage points from 2014.
Zhang Zhixiang said that at present, many domestic iron and steel enterprises have a small scale and a large number of coordination difficulties, a serious lack of limited capacity to insure prices, in the event of a decline in aggregate demand, easy to price war, into vicious competition.At the same time, due to small-scale enterprises Insufficient, will also lead to innovation and development and energy saving investment is not enough, affecting the sustainable development of enterprises and the environmental energy overload.
'Through the integration to improve industrial concentration, many problems can be resolved through consultation.Market behavior can be more rational, the market will be more clear division of labor, in the face of upstream and downstream enterprises and financial institutions will have greater bargaining space, more initiative. Zhang Zhixiang said.
Steel M & A funds to accelerate the establishment
In fact, under the trend of intensifying the merger and reorganization of steel enterprises in our country, the M & A funds started to exert force since 2017.
On the 9th, Shanxi SDIC, Shantui Group, MCC Jingcheng and Jianlong Group co-sponsored the establishment of the Shanxi Steel Industry Structure Adjustment Fund, aiming at using the equity cooperation as a link and market-oriented operation as a means to promote the steel and its It is learned that the structural adjustment fund is expected to have a total scale of 50 billion yuan and a first phase of 5 billion yuan.
Zhang Zhixiang said that the establishment of the Shanxi Iron and Steel Industrial Structure Adjustment Fund was initiated by the establishment of Siyuan Iron and Steel Industry Structure Adjustment Fund by Baowu. After Hebei Iron and Steel Group initiated the establishment of the Great Wall River Steel Industry Development Fund, the third national steel industry structure adjustment fund, It is also the first steel industry structural adjustment fund jointly established by private-owned and state-owned enterprises.
Wang Jun Biao, chairman of Shanxi State-owned Capital Investment and Operation Co., Ltd., said that the structural adjustment fund will combine the distribution of state-owned capital of steel and related industries, participate in the restructuring of local state-owned enterprises, stimulate the vitality of the market players and participate in the supply-side structural reforms in Shanxi and other regions. Promote the upgrading of traditional industries and resource-based economy, revitalize the shell resources of listed companies.
On April 7, 2017, Baowu Group took the lead in setting up China's first investment fund focusing on the steel field - Siyuan Iron and Steel Industry Structure Adjustment Fund and planned to raise 40 billion yuan to 80 billion yuan.
Zhou Zhuping, chairman of Warburg Investment, said that the steel industry funds will be in the downstream industry chain acquisition of claims or equity, and to gain control of enterprises as the focus, while industry consolidation and mixed ownership investment.By improving corporate governance, optimize the asset structure and Strengthen team incentives and other ways to achieve the core value-added steel business, and ultimately exit through the listing, sale, etc. in order to achieve revenue.
On July 28, 2017, China Great Wall Asset Management Co., Ltd. and River Steel Group Co., Ltd. formally established the Great Wall River Steel Industry Development Fund, which will focus on the initial public offering, private placement, mergers and acquisitions, and transformation and upgrading of traditional industries in the reform of state-owned enterprises in Hebei Province , Investment in strategic emerging industries, international mergers and acquisitions and other projects through the capital operation, integration of relevant industry resources, service industry restructuring in Hebei Province.
Steel industry will welcome the integration tide
On the one hand, the state has proposed to achieve the goal of 60% concentration of the steel industry by 2025 and on the other hand, the need to increase its concentration is also a bigger and stronger enterprise's own development. In the next five years, it will be a breakthrough in the merger and reorganization of the steel industry The key stage.
In September 2016, the State Council issued the Guiding Opinions on Promoting the Merger and Reorganization of Zombie Enterprises in the Iron and Steel Industry, stating that by 2025, the top ten Chinese steel industry enterprises will have 60% -70% concentration of production capacity, including 80 million tons Three to four steel-class groups, six to eighty thousand-ton steel groups, and some specialized steel groups.
Take Hebei Province as an example, by 2020, the number of steel enterprises in Hebei will be reduced from 109 to 60, creating a pattern of mergers and reorganizations of '2310', forming a large-scale iron and steel enterprise headed by both Hegang and Shougang Group The Group formed three large-scale steel groups with private-owned steel enterprises under the leadership of the regional market and ten private steel enterprises with the advantages of special products. Shanxi Province also plans to reduce from 27 steel mills in the past through mergers and acquisitions Ten.
Zhang Zhixiang believes that with the change of the stage of industrial economic development, the era of large proportion of construction-based steel will end, the structural contradiction between the varieties of steel will be further revealed, and there will be a new imbalance in the structure of varieties. Therefore, the product structure is inevitable With the adjustment, the supply-side structural reform is imperative.
Ma Guoqiang, Chairman of Baowu Group, said that with the progress of the capacity-to-production work, it will become very difficult to simply go production capacity. Merger and reorganization of enterprises will become an important path to resolve excess steel capacity and increase industrial concentration.
Taking Beijing Jianlong as an example, Shanxi Haixin Iron & Steel Group, whose previous acquisition and bankruptcy reorganization was renamed Shanxi Jianlong, ended the end of 2017 with the total production capacity of 5 million tons of Shanxi Jianlong fully re-established with an annual profit of 1.63 billion yuan.
Zhang Zhixiang said that it expects crude steel output in the steel industry to reach 870 million tons in 2017. To reach the goal of 60% industrial concentration, this means that the average output of the top ten steel enterprises will reach about 50 million tons. , Jianlong Group will strive to double its steel production capacity within five years, that is, by 2020, its steel production capacity will be increased from the existing 26 million tons to 50 million tons through mergers and acquisitions.
